Theory question 109
Basic Agricultural Economics(a)(i) State the law of supply in relation to agricultural production (ii) Give an example of a supply schedule and draw the supply curve for a named agricultural produce.
(b) State five causes of change in supply of an agricultural produce.
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(a)(i) The higher the price of a farm product, the greater the quantity supplied, and the lower the price, the smaller the quantity supplied, other things being equal
(ii) Example for yam: price per tuber ₦50 – 100 tubers; ₦100 – 200; ₦150 – 300; ₦200 – 400; curve drawn with price on the vertical axis and quantity on the horizontal, sloping upward from left to right
(b) Any five: weather/climate; cost of inputs; technology/improved methods; prices of other farm products; pests and diseases; government policy (taxes, subsidies); number of producers; season; storage and transport facilities; expected future prices
State the law, draw an upward-sloping curve from a table, then five causes.